PLEASE DO NOT GIVE SOLUTION IN IMAGE FORMATE Part IV. Record instalment note (P10-3B)On July 31, 2018, Myron Corporation purchased equipment for $750,000. The equipment waspurchased with a $50,000 down payment and with a four-year, 4%, $700,000 bank loan payablefor the balance. The terms provide for the bank loan to be repaid with monthly blended principaland interest instalment payments of $15,805 starting on August 31. Myron has a September 30year end.Instructions(a) Record the purchase of equipment and the receipt of the bank loan on July 31.(b) Record the first two instalment payments, on August 31 and September 30. Round all amountsto the nearest dollar.(c) Repeat part (b) assuming that the terms provide for monthly fixed principal payments of$14,583, plus interest, rather than blended payments of $15,805.

One of the method of acquisition of Asset is Installment Method, under which seller allow the buyer…

Instructions (a) Record the purchase of equipment and the receipt of the bank loan on July 31. (b) Record the first two instalment payments, on August 31 and September 30. Round all amounts to the nearest dollar. (c) Repeat part (b) assuming that the terms provide for monthly fixed principal payments of $14,583, plus interest, rather than blended payments of $15,805.

Instructions (a) Record the purchase of equipment and the receipt of the bank loan on July 31. (b) Record the first two instalment payments, on August 31 and September 30. Round all amounts to the nearest dollar. (c) Repeat part (b) assuming that the terms provide for monthly fixed principal payments of $14,583, plus interest, rather than blended payments of $15,805.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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